The acquisition will enable Numerex to expand its position in the fast-growing security and safety, tracking and monitoring market segments.
The purchase price was $37.5 million in cash, subject to the adjustments set forth in the merger agreement. The transaction was funded through cash-on-hand and a $25 million term loan provided by Silicon Valley Bank.
The transaction is expected to be accretive to the company’s non-GAAP earnings per share in 2014 and beyond, and to significantly improve its competitive position, while enabling a number of synergistic growth opportunities in the commercial, government, and consumer markets.
Omnilink, founded in 2004, is a leading provider of offender electronic monitoring, asset tracking, personal tracking, and lone worker safety solutions. Omnilink offers a Software-as-a-Service recurring revenue model selling to and through market leaders across many industries. Its SaaS-based recurring revenues of $11 million account for the majority of the nearly $13 million in total sales recorded in calendar year 2013.